A BILL TO BE ENTITLED
AN ACT to create the department of information technology as an executive department of the state.
The General Assembly of North Carolina enacts:

PART I. LEGISLATIVE FINDINGS, MISSION OF THE DEPARTMENT OF INFORMATION TECHNOLOGY
SECTION 1.1.  Findings. – The General Assembly finds that consolidating information technology functions and resources of the principal departments under the Department of Information Technology will improve efficiencies and management of information technology. Specifically, the General Assembly finds that such a consolidation will:
(1)	Enhance citizen interaction and satisfaction.
(2)	Create more efficient information technology operations.
(3)	Establish quality‑driven project performance standards.
(4)	Implement streamlined and effective sourcing practices.
(5)	Institutionalize business and Information Technology planning procedures.
(6)	Create clear accountability and transparency.
(7)	Enhance the State's data and analytics capabilities.
(8)	Integrate risk and security management practices.
(9)	Provide effective Information Technology management and governance standards.
SECTION 1.2.  Purpose. – The purpose of the Department of Information Technology is to ensure efficient and effective use of information technology operations, management and resources. The Department will provide strategic information technology planning, budgeting, project oversight and management, procurement, maintain secure and reliable information technology environments, and deliver shared services to State agencies, local governments, and educational institutions across the State. The Department's purpose shall be achieved by:
(1)	Establishing a consistent process for planning, maintaining, and acquiring the State's information technology resources.
(2)	Developing standards and accountability measures for information technology projects, including criteria for effective project management.
(3)	Implementing enterprise procurement procedures that result in cost‑savings on information technology purchases.
(4)	Managing the Information Technology Fund for statewide information technology efforts.
(5)	Improving the State's technology infrastructure and increasing State agencies' delivery of services to citizens.
(6)	Operating as the State enterprise organization for information technology governance.
(7)	Advancing the State's technology and data management capabilities.

PART II. DEPARTMENT ESTABLISHED/TRANSFERS
SECTION 2.1.  The Department of Information Technology is established as a single, unified cabinet‑level department that consolidates information technology functions, powers, duties, obligations and services existing within the principal departments. Notwithstanding G.S. 143B‑9 and G.S. 143B‑10, all information technology functions, powers, duties, obligations and services vested in the State entities listed in G.S. 143B‑6 are transferred to, vested in, and consolidated within the Department of Information Technology. Further, the following transfers from the Office of Information Technology Services are made:
(1)	A Type I transfer, as defined in G.S. 143A‑6, of the:
a.	Office of the State Chief Information Officer.
b.	Office of Information Technology Services.
(2)	A Type II transfer, as defined in G.S. 143A‑6, of the:
a.	North Carolina 911 Board.
b.	Center for Geographic Information and Analysis.
c.	Criminal Justice Information Network.
d.	Government Data Analytics Center.
e.	North Carolina Geographic Information Coordinating Council.
SECTION 2.2.  G.S. 143B‑2 reads as rewritten:
"§ 143B‑2.  Interim applicability of the Executive Organization Act of 1973.
The Executive Organization Act of 1973 shall be applicable only to the following named departments:
(1)	Department of Cultural Resources.
(2)	Department of Health and Human Services.
(3)	Department of Revenue.
(4)	Department of Public Safety.
(5)	Repealed by Session Laws 2012‑83, s. 47, effective June 26, 2012.
(6)	Department of Environment and Natural Resources.
(7)	Department of Transportation.
(8)	Department of Administration.
(9)	Department of Commerce.
(10)	Repealed by Session Laws 2012‑83, s. 47, effective June 26, 2012.
(11)	Department of Information Technology."
SECTION 2.3.  G.S. 143B‑6 reads as rewritten:
"§ 143B‑6.  Principal departments.
In addition to the principal departments enumerated in the Executive Organization Act of 1971, all executive and administrative powers, duties, and functions not including those of the General Assembly and its agencies, the General Court of Justice and the administrative agencies created pursuant to Article IV of the Constitution of North Carolina, and higher education previously vested by law in the several State agencies, are vested in the following principal departments:
(1)	Department of Cultural Resources.
(2)	Department of Health and Human Services.
(3)	Department of Revenue.
(4)	Department of Public Safety.
(5)	Repealed by Session Laws 2012‑83, s. 48, effective June 26, 2012.
(6)	Department of Environment and Natural Resources.
(7)	Department of Transportation.
(8)	Department of Administration.
(9)	Department of Commerce.
(10)	Community Colleges System Office.
(11)	Repealed by Session Laws 2012‑83, s. 48, effective June 26, 2012.
(12)	Department of Information Technology."
SECTION 2.4.  Article 3D of Chapter 147 of the General Statutes is repealed.
SECTION 2.5.  Chapter 143B of the General Statutes is amended by adding a new Article to read:
"Article 14.
"Department of Information Technology.
"Part 1. General Provisions.
"§ 143B‑1300.  Definitions.
The following definitions apply in this Article:
(1)	Cooperative purchasing agreement. ‑ An agreement between a vendor and one or more states or state agencies providing that the parties may collaboratively or collectively purchase information technology goods and services in order to increase economies of scale and reduce costs.
(2)	Department. – The Department of Information Technology.
(3)	Distributed information technology assets. – Hardware, software, and communications equipment not classified as traditional mainframe‑based items, including personal computers, local area networks, servers, mobile computers, peripheral equipment, and other related hardware and software items.
(4)	Information technology. – Hardware, software and telecommunications equipment, including, but not limited to, personal computers, servers, mainframes, wide and local area networks (wired and wireless), broadband, mobile or portable computers, peripheral equipment, telephones, wireless communication, handheld devices, public safety radio services, facsimile machines, technology facilities, including, but not limited to, data centers, dedicated training facilities, switching facilities, and other relevant hardware and software items as well as personnel tasked with planning, implementation, and support of technology, including hosting or vendor‑managed service solutions.
(5)	Information technology security incident. – A computer‑, network‑, or paper‑based activity that results directly or indirectly in misuse, damage, denial of service, compromise of integrity, or loss of confidentiality of a network, computer, application, or data.
(6)	Secretary. – The Secretary of the Department of Information Technology, who is the head of the Department and a member of the Governor's cabinet.
(7)	State agency. ‑ Any department, institution, commission, committee, board, division, bureau, office, officer, or official of the State. The term does not include any State entity excluded from coverage under this Article by G.S. 143B‑1302, unless otherwise expressly provided.
"§ 143B‑1301.  Departmental organization; Secretary of Information Technology.
(a)	The Secretary of Information Technology shall be qualified by education and experience for the office and shall be appointed by and serve at the pleasure of the Governor. The salary of the Secretary of Information Technology shall be set by the Governor. The Secretary of Information Technology shall receive longevity pay on the same basis as is provided to employees of the State who are subject to the North Carolina Human Resources Act.
(b)	The Department of Information Technology shall be funded through appropriations, the Information Technology Fund as provided in G.S. 143B‑1305, and operating an internal service fund for receipts.
(c)	Secretary of Information Technology. – The Department of Information Technology shall be managed under the administration of the Secretary of Information Technology. The Secretary shall do all of the following:
(1)	Prepare and present the Department's budget in accordance with Chapter 143C of the General Statutes, the State Budget Act. The Department's budget shall incorporate information technology costs and anticipated expenditures of State agencies identified as principal departments in G.S. 143B‑6, together with all divisions, boards, commissions or other State entities for which the principal departments have budgetary authority.
(2)	Obtain, review and maintain, on an ongoing basis, records of the appropriations, allotments, expenditures, and revenues of each State agency for information technology.
(3)	Adopt rules for the administration of the Department and implementing this Article, pursuant to the Administrative Procedures Act, Chapter 150B of the General Statutes.
(4)	Be responsible for developing and administering a comprehensive long‑range plan to ensure the proper management of the State's information technology resources.
(5)	Set technical standards for information technology, review and approve information technology projects and budgets, establish information technology security standards, provide for the procurement of information technology resources, and develop a schedule for the replacement or modification of information technology systems.
(6)	Require reports by State departments, institutions, or agencies of information technology assets, systems, personnel and projects and prescribing the form of such reports.
(7)	Prescribe the manner in which information technology assets, systems, and personnel shall be provided and distributed among agencies.
(8)	Prescribe the manner of inspecting or testing information technology assets, systems or personnel to determine compliance with information technology plans, specifications and requirements.
"§ 143B‑1302.  Exemptions; deviations for agencies.
(a)	Except as otherwise specifically provided by law, this Article shall not apply to the General Assembly, the Judicial Department, or The University of North Carolina and its constituent institutions. These agencies may elect to participate in the information technology programs, services, or contracts offered by the Department, including information technology procurement, in accordance with the statutes, policies, and rules of the Department.
(b)	Deviations. – Any State agency may apply in writing to the Secretary for authority to deviate from any provision of Part 3, Shared Information Technology Services, or Part 5, Information Technology Procurement, of this Article. If granted, any deviation shall be consistent with available funding and shall be subject to such terms and conditions as may be specified by the Secretary. If the agency's request for deviation is denied by the Secretary, the agency may request a review of the decision pursuant to G.S. 143B‑1316. The authority for deviations shall not supersede G.S. 143B‑426.38A or Part 6, Security of Information Technology, of this Article.
(c)	Notwithstanding subsection (b) of this section, any principal department or Council of State agency shall review and evaluate any deviation authorized and shall, in consultation with the Department of Information Technology, adopt a plan to phase out any deviations that the Secretary of Information Technology determines to be unnecessary in carrying out functions and responsibilities unique to the agency having a deviation. The plan adopted by the agency shall include a strategy to coordinate its general information processing functions with the Department of Information Technology in the manner prescribed by this act, and provide for its compliance with policies, procedures, and guidelines adopted by the Department of Information Technology. Any agency receiving a deviation shall submit its plan to the Office of State Budget and Management as directed by the Secretary.
"§ 143B‑1303.  Departmental human resources.
(a)	The Secretary may appoint all employees of the Department of Information Technology necessary to carry out the powers and duties of the Department. All employees of the Department are under the supervision, direction, and control of the Secretary, who may assign any function vested in his or her office to any subordinate employee of the Department.
(b)	The Secretary may appoint one or more deputy secretaries as necessary for the administration and operation of the Department, each of whom shall be under the control and direction of the Secretary. The salaries of the deputy secretaries shall be set by the Secretary. The deputy secretaries are exempt from the North Carolina Human Resources Act.
(c)	Subject to approval of the Governor and limitations of G.S. 126‑5, the Secretary may appoint or designate additional managerial and policymaking positions, including, but not limited to, Agency IT Executives and Agency IT Leaders, chief financial officer, and general counsel. These employees shall be subject to the North Carolina Human Resources Act, except that employees in positions designated as exempt under G.S. 126‑5(d)(1) are not subject to the Act, in accordance with the provisions of that section.
(d)	The Secretary may, subject to the provisions of G.S. 147‑64.7(b)(2), obtain the services of independent public accountants, qualified management consultants, and other professional persons or experts to carry out the powers and duties of this Article.
(e)	Criminal Records Checks. – The Secretary shall require background investigations of any employee or prospective employee, including a criminal history record check, which may include a search of the State and National Repositories of Criminal Histories based on the person's fingerprints. A criminal history record check shall be conducted by the State Bureau of Investigation upon receiving fingerprints and other information provided by the employee or prospective employee. If the employee or prospective employee has been a resident of the State for less than five years, the background report shall include a review of criminal information from both the State and National Repositories of Criminal Histories. The criminal background report shall be provided to the Secretary of Information Technology and is not a public record under Chapter 132 of the General Statutes.
"Part 2. Information Technology Planning, Funding, and Reporting.
"§ 143B‑1304.  Planning and financing State information technology resources.
(a)	The Secretary shall develop policies for agency information technology planning and financing to achieve the legislative purposes of this act. Agencies, whether within principal departments or the Council of State agencies, shall prepare and submit such plans as required in this section.
(1)	The Department shall analyze the State's legacy information technology systems and develop a plan to ascertain the needs, costs, and time frame required for State agencies to efficiently use information technology systems, resources, security, and data management, to achieve the legislative purposes of this act. The plan may include legacy applications and infrastructure, migration from legacy environments and other information necessary for fiscal or technology planning.
(2)	The Secretary shall develop a biennial State Information Technology Plan (Plan). The Plan shall be transmitted to the General Assembly in conjunction with the Governor's budget of each regular session.
(3)	The Secretary shall develop one or more strategic plans for information technology. The Secretary shall determine whether strategic plans are needed for any agency and shall consider an agency's operational needs, functions and capabilities when making such determinations.
(b)	The biennial State Information Technology Plan shall be transmitted to the General Assembly in conjunction with the Governor's budget of each regular session. The Plan shall include the following elements:
(1)	An inventory of current information technology assets and major projects. As used in this subdivision, the term "major project" includes projects costing more than five hundred thousand dollars ($500,000) to implement.
(2)	Significant unmet needs for information technology resources over a five‑year time period. The Plan shall rank the unmet needs in priority order according to their urgency.
(3)	A statement of the financial requirements, together with a recommended funding schedule for major projects in progress or anticipated for approval during the upcoming fiscal biennium.
(4)	An analysis of opportunities for statewide initiatives that would yield significant efficiencies or improve effectiveness in State programs.
(c)	Each State agency shall actively participate in preparing, testing and implementing an information technology plan required under subsection (a) of this section. Agencies shall provide all financial information to the Secretary necessary to determine full costs and expenditures for information technology assets, resources provided by the agencies or through contracts or grants. The Department shall consult with and assist State agencies in the preparation of these plans; and shall provide appropriate personnel or other resources to the principal departments identified in G.S. 143B‑6; and to Council of State agencies upon request pursuant to Part 3, Shared Information Technology Services, of this Article. Plans shall be submitted to the Secretary of Information Technology by October 1 of each even‑numbered year.
"§ 143B‑1305.  Information Technology Fund.
There is established a special revenue fund to be known as the Information Technology Fund, which may receive transfers or other credits as authorized by the General Assembly. Money may be appropriated from the Information Technology Fund to meet statewide requirements, including, but not limited to, project management, security, electronic mail and State portal operations. Expenditures involving funds appropriated to the Department from the Information Technology Fund shall be made by the Secretary. Interest earnings on the Information Technology Fund balance shall be credited to the Information Technology Fund.
"§ 143B‑1306.  Information technology reports.
(a)	The Secretary shall report to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division regarding the Internal Service Fund on a quarterly basis, no later than the first day of the second month following the end of the quarter. The report shall include current cash balances, line‑item detail on expenditures from the previous quarter, and anticipated expenditures and revenues. The Secretary shall report to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division on expenditures for the upcoming quarter, projected year‑end balance, and the status report on personnel position changes, including new positions created and existing positions eliminated. Spending reports shall comply with the State Accounting System object codes.
(b)	Information Technology Fund Reporting. – By October 1 of each year, the Secretary shall submit to the Joint Legislative Oversight Committee on Information Technology a report on all expenditures involving funds appropriated to the Department from the Information Technology Fund for the preceding fiscal year.
"§ 143B‑1307.  Financial reporting and accountability for information technology investments and expenditures.
The Department, along with the Office of State Budget and Management and the Office of the State Controller, shall develop processes for budgeting and accounting of expenditures for information technology operations, services, projects, infrastructure, and assets for State agencies, notwithstanding any deviations permitted pursuant to G.S. 143B‑1303(b) or G.S. 143B‑1303(c). The budgeting and accounting processes may include hardware, software, personnel, training, contractual services, and other items relevant to information technology, and the sources of funding for each. Annual reports regarding information technology shall be coordinated by the Department with the Office of State Budget and Management and the Office of the State Controller, and submitted to the Governor and the General Assembly on or before October 1 of each year.
"§ 143B‑1308.  Information technology procurement policy; reporting requirements.
(a)	Policy. – In order to further the policy of the State to encourage and promote the use of small, minority, physically handicapped, and women contractors in State purchasing of goods and services, principal department and Council of State agencies shall cooperate with the Department in efforts to encourage the use of small, minority, physically handicapped, and women contractors in achieving the purposes of this Article, which is to provide for the effective and economical acquisition, management, and disposition of information technology.
(b)	Bids. – A vendor submitting a bid shall disclose in a statement, provided contemporaneously with the bid, where services will be performed under the contract sought, including any subcontracts and whether any services under that contract, including any subcontracts, are anticipated to be performed outside the United States. Nothing in this section is intended to contravene any existing treaty, law, agreement, or regulation of the United States. The Secretary of Information Technology shall retain the statements required by this subsection regardless of the State entity that awards the contract and shall report annually to the Secretary of Administration on the number of contracts which are anticipated to be performed outside the United States.
(c)	Reporting. – Every State agency that makes a direct purchase of information technology using the services of the Department of Information Technology shall report directly to the Department of Administration all information required by G.S. 143‑48(b).
(d)	Data from Department of Administration. – The Department of Administration shall collect and compile the data described in this section and report it annually to the Department of Information Technology.
"§ 143B‑1309.  Statewide electronic portal; annual report.
(a)	The Department of Information Technology shall plan, develop, implement, and operate a statewide electronic portal (i) to increase the convenience of members of the public in conducting online transactions with, and obtaining information from, State government and (ii) to facilitate their interactions and communications with government agencies.
(b)	Beginning June 30, 2015, and then annually thereafter, the Secretary shall report to the General Assembly and to the Fiscal Research Division on the following information:
(1)	Services currently provided and associated transaction volumes or other relevant indicators of utilization by user type.
(2)	New services added during the previous year.
(3)	Services added that are currently available in other states.
(4)	The total amount collected for each service.
(5)	The total amount remitted to the State for each service.
(6)	The total amount remitted to the vendor for each service.
(7)	Any other use of State data by the vendor and the total amount of revenue collected per each use and in total.
(8)	Customer satisfaction with each service.
(9)	Any other issues associated with the provision of each service.
"§ 143B‑1310.  Business continuity planning.
The Secretary shall oversee the manner and means by which information technology business and disaster recovery plans for the principal department and Council of State agencies are created, reviewed and updated. Each principal department and Council of State agency shall establish a disaster recovery planning team to work with the Department, or other resources designated by the Secretary, to develop the disaster recovery plan and to administer implementation of the plan. In developing the plan, all of the following shall be completed:
(1)	Consider the organizational, managerial, and technical environments in which the disaster recovery plan must be implemented.
(2)	Assess the types and likely parameters of disasters most likely to occur and the resultant impacts on the agency's ability to perform its mission.
(3)	List protective measures to be implemented in anticipation of a natural or man‑made disaster.
(4)	Determine whether the plan is adequate to address information technology security incidents.
(5)	Each principal department and Council of State agency shall submit its disaster recovery plan to the Secretary on an annual basis and as otherwise requested by the Secretary.
"Part 3. Shared Information Technology Services.
"§ 143B‑1311.  Information technology operations.
(a)	Functions. – In addition to other functions authorized or required by this Article, the Department of Information Technology shall do the following:
(1)	Submit all rates and fees for common, shared, and State government‑wide technology services provided by the Department to the Office of State Budget and Management for approval.
(2)	Establish and operate centers of expertise for specific information technologies and services to serve two or more agencies on a cost‑sharing basis, if the Secretary, after consultation with the Office of State Budget and Management, decides it is advisable from the standpoint of efficiency and economy to establish these centers and services.
(3)	Charge each State agency for which services are performed its proportionate part of the cost of maintaining and operating the shared centers and services, subject to approval by the Office of State Budget and Management.
(4)	Require any State agency served to transfer to the Department ownership, custody, or control of information‑processing equipment, supplies, and positions required by the shared centers and services.
(5)	Adopt plans, policies, and procedures for the acquisition, management, and use of information technology resources in State agencies to facilitate more efficient and economic use of information technology in the agencies.
(6)	Develop and promote training programs to efficiently implement, use, and manage information technology resources throughout State government.
(7)	Provide cities, counties, and other local governmental units with access to the Department's information resource centers and services as authorized in this section for State agencies. Access shall be provided on the same cost basis that applies to State agencies.
(8)	Provide geographic information systems services through the Center for Geographic Information and Analysis on a cost recovery basis. The Department and the Center for Geographic Information and Analysis may contract for funding from federal or other sources to conduct or provide geographic information systems services for public purposes.
(b)	Confidentiality. – No data of a confidential nature, as defined in the General Statutes or federal law, may be entered into or processed through any information technology system or network established under this Article until safeguards for the data's security satisfactory to the Secretary have been designed and installed and are fully operational. This section does not affect the provisions of G.S. 147‑64.6 or G.S. 147‑64.7.
(c)	Cost‑Sharing with Other Branches. – Notwithstanding any other provision of law, the Department shall provide information technology services on a cost‑sharing basis to the judicial branch as requested by the Chief Justice and to the General Assembly and its agencies as requested by the Legislative Services Commission.
(d)	It shall be the duty of all principal departments and Council of State agencies of the State government to furnish to the Secretary when requested, and on forms as prescribed, estimates of all information technology goods and services needed and required by such department, institution or agency for such periods in advance as may be designated by the Secretary. In addition to the report required, all departments, institutions, or agencies of the State government shall furnish to the Secretary when requested, and on forms as prescribed, actual expenditures for all goods and services needed and required by the department, institution, or agency for such periods after the expenditures have been made as may be designated by the Secretary.
"§ 143B‑1312.  Communications services.
(a)	The Secretary of Information Technology shall exercise authority for telecommunications and other communications included in information technology relating to the internal management and operations of State agencies. In discharging that responsibility, the Secretary of Information Technology shall do the following:
(1)	Provide for the establishment, management, and operation, through either State ownership, by contract, or through commercial leasing, of the following systems and services as they affect the internal management and operation of State agencies:
a.	Central telephone systems and telephone networks, including Voice over Internet Protocol and Commercial Mobile Radio Systems.
b.	Satellite services.
c.	Closed‑circuit TV systems.
d.	Two‑way radio systems.
e.	Microwave systems.
f.	Related systems based on telecommunication technologies.
g.	The "State Network," managed by the Department, which means any connectivity designed for the purpose of providing Internet Protocol transport of information to any building.
h.	Broadband.
(2)	Coordinate the development of cost‑sharing systems for respective user agencies for their proportionate parts of the cost of maintenance and operation of the systems and services listed in subdivision (1) of this subsection.
(3)	Assist in the development of coordinated telecommunications services or systems within and among all State agencies and recommend, where appropriate, cooperative utilization of telecommunication facilities by aggregating users.
(4)	Perform traffic analysis and engineering for all telecommunications services and systems listed in subdivision (1) of this subsection.
(5)	Establish telecommunications specifications and designs so as to promote and support compatibility of the systems within State agencies.
(6)	Provide a periodic inventory of telecommunications costs, facilities, systems, and personnel within State agencies.
(7)	Promote, coordinate, and assist in the design and engineering of emergency telecommunications systems, including, but not limited to, the 911 emergency telephone number program, Emergency Medical Services, and other emergency telecommunications services.
(8)	Perform frequency coordination and management for State agencies and local governments, including all public safety radio service frequencies, in accordance with the rules and regulations of the Federal Communications Commission or any successor federal agency.
(9)	Advise all State agencies on telecommunications management planning and related matters and provide through the State Personnel Training Center or the Department of Information Technology training to users within State agencies in telecommunications technology and systems.
(10)	Assist and coordinate the development of policies and long‑range plans, consistent with the protection of citizens' rights to privacy and access to information, for the acquisition and use of telecommunications systems, and base such policies and plans on current information about State telecommunications activities in relation to the full range of emerging technologies.
(b)	The provisions of this section shall not apply to the Judicial Information System in the Judicial Department.
"§ 143B‑1313.  Communications services for local governmental entities and other entities.
(a)	The Secretary of Information Technology shall provide cities, counties, and other local governmental entities with access to communications systems or services established by the Department under this Part for State agencies. Access shall be provided on the same cost basis that applies to State agencies.
(b)	The Secretary of Information Technology shall establish broadband communications services and permit, in addition to State agencies, cities, counties, and other local government entities, the following organizations and entities to share on a not‑for‑profit basis:
(1)	Nonprofit educational institutions as defined in G.S. 116‑280.
(2)	MCNC and research affiliates of MCNC for use only in connection with research activities sponsored or funded, in whole or in part, by MCNC, if such research activities relate to health care or education in North Carolina.
(3)	Agencies of the United States government operating in North Carolina for use only in connection with activities that relate to health care or education in North Carolina.
(4)	Hospitals, clinics, and other health care facilities for use only in connection with activities that relate to health care or education in North Carolina.
(c)	Provided, however, that communications or broadband telecommunications services provided pursuant to this section shall not cause the State or the Department of Information Technology to be classified as a public utility as that term is defined in G.S. 62‑3(23)a.6., nor as a retailer as that term is defined in G.S. 105‑164.3. Nor shall the State or the Department of Information Technology engage in any activities that may cause those entities to be classified as a common carrier as that term is defined in the Communications Act of 1934, 47 U.S.C. § 153(10). Provided further, authority to share communications services with the non‑State agencies set forth in subdivisions (1) through (4) of this subsection shall terminate not later than one year from the effective date of a tariff for such service or federal law that preempts this section.
"Part 4. Information Technology Projects and Management.
"§ 143B‑1314.  Project approval standards.
(a)	Project Review and Approval. – The Secretary shall review all information technology projects for the principal departments and Council of State agencies. Project approval may be granted upon the Secretary's determination that the project conforms to project management procedures and policies, procurement rules and policies, and that sufficient funds are available.
(b)	Project Implementation. – No State agency, unless expressly exempt within this Article, shall proceed with an information technology project until the Secretary approves the project. If a project is not approved, the Secretary shall specify in writing to the agency the grounds for denying the approval. The Secretary shall provide this information to the agency and the Office of State Budget and Management within five business days of the denial.
(c)	Suspension of Approval. – The Secretary of Information Technology may suspend the approval of any information technology project that does not continue to meet the applicable quality assurance standards. If the Secretary suspends approval of a project, the Secretary shall specify in writing to the agency the grounds for suspending the approval. The Secretary shall provide this information to the agency within five business days of the suspension.
The Department shall report any suspension immediately to the Office of the State Controller and the Office of State Budget and Management. The Office of State Budget and Management shall not allow any additional expenditure of funds for a project that is no longer approved by the Secretary of Information Technology.
(d)	General Quality Assurance. – Information technology projects authorized pursuant to G.S. 143B‑1302 shall meet all project standards and requirements established under this Part.
(e)	Performance Contracting. – All contracts between a State agency and a private party for information technology projects shall include provisions for vendor performance review and accountability, contract suspension or termination, and termination of funding. The Secretary may require that these contract provisions include a performance bond, monetary penalties, or require other performance assurance measures for projects that are not completed within the specified time period or that involve costs in excess of those specified in the contract. The Secretary may utilize cost‑savings realized on government vendor partnerships, as defined by G.S. 143‑135.9, as performance incentives for an information technology vendor.
(f)	Notwithstanding the provisions of G.S. 114‑2.3, any State agency developing and implementing an information technology project with a total cost of ownership in excess of five million dollars ($5,000,000) may be required by the Secretary of Information Technology to engage the services of private counsel or subject matter experts with the appropriate information technology and intellectual property expertise. The private counsel or subject matter expert may review requests for proposals; review and provide advice and assistance during the evaluation of proposals and selection of any vendors; and review and negotiate contracts associated with the development, implementation, operation, and maintenance of the project. This requirement may also apply to information technology programs that are separated into individual projects, if the total cost of ownership for the overall program exceeds five million dollars ($5,000,000).
"§ 143B‑1315.  Project management standards.
(a)	Principal Department Agency Responsibilities. – Each agency shall provide personnel to participate in IT project management, implementation, testing and other activities for any information technology project. Agency personnel shall provide periodic reports to the project management assistant assigned to the project by the Secretary under subsection (b) of this section. The reports shall include information regarding the agency's business requirements, applicable laws and regulations, project costs, issues related to hardware, software, or training, projected and actual completion dates, and any other information related to the implementation of the information technology project.
(b)	Council of State Agency Responsibilities. – Each agency shall provide for one or more project managers who meet the applicable quality assurance standards for each information technology project that is subject to approval by the Secretary. Each project manager shall be subject to the review and approval of the Secretary. Each agency project manager shall provide periodic reports to the project management assistant assigned to the project by the Secretary under subsection (c) of this section. The reports shall include information regarding project costs, issues related to hardware, software, or training, projected and actual completion dates, and any other information related to the implementation of the information technology project.
(c)	Secretary Responsibilities. – The Secretary of Information Technology shall provide a project management assistant from the Department for any approved project, whether the project is undertaken in single or multiple phases or components. The Secretary may designate a project management assistant for any other information technology project.
The project management assistant shall advise the agency with the initial planning of a project, the content and design of any request for proposals, contract development, procurement, and architectural and other technical reviews. The project management assistant shall also monitor progress in the development and implementation of the project and shall provide status reports to the agency and the Secretary of Information Technology, including recommendations regarding continued approval of the project.
"§ 143B‑1316.  Dispute resolution.
(a)	Agency Request for Review. – In any instance where the Secretary has denied or suspended the approval of an information technology project, or has denied an agency's request for deviation pursuant to G.S. 143B‑1302, the affected State agency may request a committee review of the Secretary's decision. The agency shall submit a written request for review to the State Controller within 15 working days following the agency's receipt of the Secretary's written grounds for denial or suspension. The agency's request for review shall specify the grounds for its disagreement with the Secretary's determination. The agency shall include with its request for review a copy of the Secretary's written grounds for denial or suspension.
(b)	Review Process. – The review committee shall consist of the State Controller, the State Budget Officer, and the Secretary of Administration. The State Controller shall serve as the chair of the review committee. If the chair or one of the members of the review committee is an official of the agency that has requested the review, that person is deemed to have a conflict of interest and is ineligible to participate in the consideration of the matter, and the two remaining members of the review committee shall select an alternate official to serve as a member of the review committee for that specific matter. Within 10 business days following receipt of an agency's request for review, the committee shall meet to consider the matter.
The committee shall review the information provided and may request additional information from either the agency or the Secretary. The committee may affirm, reverse, or modify the decision of the Secretary, or may remand the matter back to the Secretary for additional findings. Within 30 days after initial receipt of the agency's request for review, the committee shall notify the agency and the Secretary of its decision in the matter. The notification shall be in writing, and shall specify the grounds for the committee's decision.
The committee may reverse or modify a decision of the Secretary when the committee finds at least one of the following:
(1)	The decision of the Secretary is unsupported by substantial evidence that the agency project fails to meet one or more standards of efficiency and quality of State government information technology as required under this Article.
(2)	The Secretary did not have the requisite statutory authority or jurisdiction to render the decision.
(3)	The decision of the Secretary was rendered in a manner that was arbitrary, capricious, or indicative of an abuse of discretion.
(c)	In addition to the powers granted pursuant to Article 6B of this Chapter or by any other provision of law, the Department of Information Technology may go before a panel consisting of the State Treasurer, the State Controller, and the State Budget Officer, or their designees, to resolve disputes concerning services, fees, and charges incurred by Council of State agencies receiving information technology services from the Department. The State Treasurer shall adopt rules for the dispute resolution process. The decisions of the panel shall be final in the settlement of all fee disputes that come before it.
"Part 5. Information Technology Procurement.
"§ 143B‑1317.  Procurement of information technology.
(a)	Notwithstanding any other provision of law, the Department of Information Technology shall procure all information technology for principal department and Council of State agencies. The Department shall integrate technological review, cost analysis, and procurement for all information technology needs of those State agencies in order to make procurement and implementation of technology more responsive, efficient and cost‑effective. G.S. 143‑135.9 shall apply to information technology procurements.
(b)	The Department shall have the authority and responsibility, subject to the provisions of this Part, to do the following:
(1)	Purchase or contract for all information technology for State agencies.
(2)	Establish processes, specifications, and standards that shall apply to all information technology to be purchased, licensed, or leased by State agencies and relating to information technology personal services contract requirements for State agencies.
(3)	Establish procedures to permit State agencies and local government agencies to use the General Services Administration (GSA) Cooperative Purchasing Program to purchase information technology (i) awarded under General Services Administration Supply Schedule 70 Information Technology and (ii) from contracts under the GSA's Consolidated Schedule containing information technology special item numbers.
(4)	Comply with the State government‑wide technical architecture, as required by the Secretary.
(5)	Utilize the purchasing benchmarks established by the Secretary of Administration pursuant to G.S. 143‑53.1.
(6)	Provide strategic sourcing resources and planning to compile and consolidate all estimates of information technology goods and services needed and required by State agencies.
(c)	Confidentiality. – Contract information compiled by the Department shall be made a matter of public record after the award of contract. Trade secrets, test data, similar proprietary information, and security information protected under G.S. 132‑6.1(c) or other law shall remain confidential.
(d)	Electronic Procurement. ‑ The Secretary may authorize the use of the electronic procurement system established by G.S. 143‑48.3, or other systems, to conduct reverse auctions and electronic bidding. For purposes of this Part, "reverse auction" means a real‑time purchasing process in which vendors compete to provide goods or services at the lowest selling price in an open and interactive electronic environment. The vendor's price may be revealed during the reverse auction. The Department may contract with a third‑party vendor to conduct the reverse auction. "Electronic bidding" means the electronic solicitation and receipt of offers to contract. Offers may be accepted and contracts may be entered by use of electronic bidding. All requirements relating to formal and competitive bids, including advertisement, seal, and signature, are satisfied when a procurement is conducted or a contract is entered in compliance with the reverse auction or electronic bidding requirements established by the Department.
(e)	Bulk Purchasing. – The Secretary shall establish procedures for the procurement of information technology. The procedures may include aggregation of hardware purchases, the use of formal bid procedures, restrictions on supplemental staffing, enterprise software licensing, hosting, and multi‑year maintenance agreements. The Secretary may require agencies to submit information technology procurement requests to the Department on October 1, January 1, and June 1, or another regularly occurring schedule, of each fiscal year in order to allow for bulk purchasing.
(f)	All offers to contract, whether through competitive bidding or other procurement method, shall be subject to evaluation and selection by acceptance of the most advantageous offer to the State. Evaluation shall include best value, as the term is defined in G.S. 143‑135.9(a)(1); compliance with information technology project management policies, compliance with information technology security standards and policies, substantial conformity with the specifications and other conditions set forth in the solicitation.
(g)	Exceptions. ‑ In addition to permitted waivers of competition, the requirements of competitive bidding shall not apply to information technology contracts and procurements:
(1)	In cases of pressing need or emergency arising from a security incident;
(2)	In the use of master licensing or purchasing agreements governing the Department's acquisition of proprietary intellectual property;
(3)	The Secretary may award a cost plus percentage of cost contract for information technology projects. As needed, the Secretary shall report to the Joint Legislative Oversight Committee on Information Technology on any cost plus percentage contracts awarded.
"§ 143B‑1318.  Restriction on State agency contractual authority with regard to information technology; local governments.
(a)	All State agencies covered by this Article shall use contracts for information technology established by the Department. Notwithstanding any other statute, the authority of State agencies to procure or obtain information technology shall be subject to compliance with the provisions of this Part. The Department may exercise the authority of State agencies to procure or obtain information technology as otherwise provided by statute.
(b)	Notwithstanding any other provision of law, local governmental entities may use the information technology programs, services, or contracts offered by the Department, including information technology procurement, in accordance with the statutes, policies, and rules of the Department. For purposes of this subsection, "local governmental entities" includes local school administrative units, as defined in G.S. 115C‑5, and community colleges. Local governmental entities are not required to comply with otherwise applicable competitive bidding requirements when using contracts established by the Departments. Any other State entities exempt from Part 3 or Part 5 of this Article may also use the information technology programs, services, or contracts offered by the Department, including information technology procurement, in accordance with the statutes, policies, and rules of the Department.
"§ 143B‑1319.  Unauthorized use of public purchase or contract procedures for private benefit prohibited.
(a)	It is unlawful for any person, by the use of the powers, policies, or procedures described in this Part or established hereunder, to purchase, attempt to purchase, procure, or attempt to procure any property or services for private use or benefit.
(b)	This prohibition shall not apply if:
(1)	The State agency through which the property or services are procured had theretofore established policies and procedures permitting such purchases or procurement by a class or classes of persons in order to provide for the mutual benefit of such persons and the department, institution, or agency involved, or the public benefit or convenience; and
(2)	Such policies and procedures, including any reimbursement policies, are complied with by the person permitted thereunder to use the purchasing or procurement procedures described in this Part or established thereunder.
(c)	Any violation of this section is a Class 1 misdemeanor.
(d)	Any employee or official of the State who violates this Part shall be liable to the State to repay any amount expended in violation of this Part, together with any court costs.
"§ 143B‑1320.  Financial interest of officers in sources of supply; acceptance of bribes.
Neither the Secretary of Information Technology, any deputy secretary nor any other policy‑making or managerially exempt personnel shall be financially interested, or have any personal beneficial interest, either directly or indirectly, in the purchase of, or contract for, any information technology, nor in any firm, corporation, partnership, or association furnishing any information technology to the State government, or any of its departments, institutions, or agencies, nor shall any of these persons or any other Department employee accept or receive, directly or indirectly, from any person, firm, or corporation to whom any contract may be awarded, by rebate, gifts, or otherwise, any money or anything of value whatsoever, or any promise, obligation, or contract for future reward or compensation. Violation of this section is a Class F felony, and any person found guilty of a violation of this section shall, upon conviction, be removed from State office or employment.
"§ 143B‑1321.  Certification that information technology bid submitted without collusion.
The Secretary shall require bidders to certify that each bid on information technology contracts overseen by the Department is submitted competitively and without collusion. False certification is a Class I felony.
"§ 143B‑1322.  Award review.
(a)	When the dollar value of a contract for the procurement of information technology equipment, materials, and supplies exceeds the benchmark established by G.S. 143B‑1317, an award recommendation shall be submitted to the Secretary of Information Technology for approval or other action. The Secretary shall promptly notify the agency or institution making the recommendation, or for which the purchase is to be made, of the action taken.
(b)	Prior to submission for review pursuant to this section for any contract for information technology being acquired for the benefit of an agency authorized to deviate from this Article pursuant to G.S. 143B‑1302(b), the Secretary shall review and approve the procurement to ensure compliance with the established processes, specifications, and standards applicable to all information technology purchased, licensed, or leased in State government, including established procurement processes, and compliance with the State government‑wide technical architecture and standards established by the Secretary.
(c)	The Secretary shall provide a report of all contract awards approved through the Statewide Procurement Office as indicated below. The report shall include the amount of the award, the contract term, the award recipient, the using agency, and a short description of the nature of the award, as follows:
(1)	For contract awards greater than twenty‑five thousand dollars ($25,000), to the Cochairs of the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division on a monthly basis.
(2)	For all contract awards outside the established purchasing system, to the Secretary of the Department of Administration on a quarterly basis.
"§ 143B‑1323.  Attorney General contract assistance.
At the request of the Secretary, the Attorney General shall provide legal advice and services necessary to implement this Part.
"§ 143B‑1324.  Purchase of certain computer equipment and televisions by State agencies and governmental entities prohibited.
(a)	No State agency, local political subdivision of the State, or other public body shall purchase computer equipment or televisions, as defined in G.S. 130A‑309.131, or enter into a contract with any manufacturer that the Secretary determines is not in compliance with the requirements of G.S. 130A‑309.134 or G.S. 130A‑309.135 as determined from the list provided by the Department of Environment and Natural Resources pursuant to G.S. 130A‑309.138. The Secretary shall issue written findings upon a determination of noncompliance. A determination of noncompliance by the Secretary is reviewable under Article 3 of Chapter 150B of the General Statutes.
(b)	The Department shall make the list available to local political subdivisions of the State and other public bodies. A manufacturer that is not in compliance with the requirements of G.S. 130A‑309.134 or G.S. 130A‑309.135 shall not sell or offer for sale computer equipment or televisions to the State, a local political subdivision of the State, or other public body.
"§ 143B‑1325.  Refurbished computer equipment purchasing program.
(a)	The Department of Information Technology and the Department of Administration, with the administrative support of the Statewide Procurement Office, shall offer State and local governmental entities the option of purchasing refurbished computer equipment from registered computer equipment refurbishers whenever most appropriate to meet the needs of State and local governmental entities.
(b)	State and local governmental entities shall document savings resulting from the purchase of the refurbished computer equipment, including, but not limited to, the initial acquisition cost as well as operations and maintenance costs. These savings shall be reported quarterly to the Department of Information Technology.
(c)	The Statewide Procurement Office shall administer the refurbished computer equipment program by establishing a competitive purchasing process to support this initiative that meets all State information technology procurement laws and procedures and ensures that agencies receive the best value.
(d)	Participating computer equipment refurbishers must meet all procurement requirements established by the Department of Information Technology and the Department of Administration.
"§ 143B‑1326.  Configuration and specification requirements same as for new computers.
Refurbished computer equipment purchased under this act must conform to the same standards as the State may establish as to the configuration and specification requirements for the purchase of new computers.
"§ 143B‑1327.  Data on reliability and other issues; report.
The Department of Information Technology shall maintain data on equipment reliability, potential cost‑savings, and any issues associated with the refurbished computer equipment initiative and shall report the results of the initiative to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division by March 1, 2016, and then quarterly thereafter.
"Part 6. Security of Information Technology.
"§ 143B‑1328.  Statewide security standards.
The Secretary of Information Technology shall establish a statewide set of standards for information technology security to maximize the functionality, security, and interoperability of the State's distributed information technology assets, including data classification and management, communications and encryption technologies. The Secretary shall review and revise the security standards annually. As part of this function, the Secretary of Information Technology shall review periodically existing security standards and practices in place among the various State agencies to determine whether those standards and practices meet statewide security and encryption requirements. The Secretary of Information Technology may assume the direct responsibility of providing for the information technology security of any State agency that fails to adhere to security standards adopted under this Article.
"§ 143B‑1329.  Secretary approval of security standards and risk assessments.
(a)	Notwithstanding G.S. 143‑48.3, G.S. 143B‑1302(b) or (c), or any other provision of law, and except as otherwise provided by this Article, all information technology security goods, software or services purchased using State funds, or for use by a State agency or in a State facility, shall be subject to approval by the Secretary of Information Technology in accordance with security standards adopted under this Part.
(b)	The Secretary of Information Technology shall conduct risk assessments to identify compliance, operational and strategic risks to the enterprise network. These assessments may include methods such as penetration testing or similar assessment methodologies. The Secretary of Information Technology may contract with another party or parties to perform the assessments. Detailed reports of the risk and security issues identified shall be kept confidential as provided in G.S. 132‑6.1(c).
(c)	If the legislative branch or the judicial branch develop their own security standards, taking into consideration the mission and functions of that entity, that are comparable to or exceed those set by the Secretary of Information Technology under this section, then those entities may elect to be governed by their own respective security standards. In these instances, approval of the Secretary of Information Technology shall not be required before the purchase of information technology security devices and services. If requested, the Secretary of Information Technology shall consult with the legislative branch and the judicial branch in reviewing the security standards adopted by those entities.
(d)	Before a State agency may enter into any contract with another party for an assessment of network vulnerability, the State agency shall notify the Secretary of Information Technology and obtain approval of the request. If the State agency enters into a contract with another party for assessment and testing, after approval of the Secretary of Information Technology, the State agency shall issue public reports on the general results of the reviews. The contractor shall provide the State agency with detailed reports of the security issues identified that shall not be disclosed as provided in G.S. 132‑6.1(c). The State agency shall provide the Secretary of Information Technology with copies of the detailed reports that shall not be disclosed as provided in G.S. 132‑6.1(c).
(e)	Nothing in this section shall be construed to preclude the Office of the State Auditor from assessing the security practices of State information technology systems as part of its statutory duties and responsibilities.
"§ 143B‑1330.  Assessment of agency compliance with security standards.
At a minimum, the Secretary of Information Technology shall annually assess the ability of each State agency, and each agency's contracted vendors, to comply with the current security enterprise‑wide set of standards established pursuant to this section. The assessment shall include, at a minimum, the rate of compliance with the enterprise‑wide security standards and an assessment of security organization, security practices, security information standards, network security architecture, and current expenditures of State funds for information technology security. The assessment of a State agency shall also estimate the cost to implement the security measures needed for agencies to fully comply with the standards. Each State agency shall submit information required by the Secretary of Information Technology for purposes of this assessment. The Secretary of Information Technology shall include the information obtained from the assessment in the State Information Technology Plan.
"§ 143B‑1331.  State agency cooperation; liaisons.
(a)	The head of each principal department and Council of State agency shall cooperate with the Secretary of Information Technology in the discharge of the Secretary's duties by providing the following information to the Department:
(1)	The full details of the State agency's information technology and operational requirements and of all the agency's information technology security incidents within 24 hours of confirmation.
(2)	Comprehensive information concerning the information technology security employed to protect the agency's information technology.
(3)	A forecast of the parameters of the agency's projected future information technology security needs and capabilities.
(4)	Designating an agency liaison in the information technology area to coordinate with the State Chief Information Officer. The liaison shall be subject to a criminal background report from the State Repository of Criminal Histories, which shall be provided by the State Bureau of Investigation upon its receiving fingerprints from the liaison. If the liaison has been a resident of this State for less than five years, the background report shall include a review of criminal information from both the State and National Repositories of Criminal Histories. The criminal background report shall be provided to the State Chief Information Officer and the head of the agency. In addition, all personnel in the Office of the State Auditor who are responsible for information technology security reviews pursuant to G.S. 147‑64.6(c)(18) shall be subject to a criminal background report from the State Repository of Criminal Histories, which shall be provided by the State Bureau of Investigation upon receiving fingerprints from the personnel designated by the State Auditor. For designated personnel who have been residents of this State for less than five years, the background report shall include a review of criminal information from both the State and National Repositories of Criminal Histories. The criminal background reports shall be provided to the State Auditor. Criminal histories provided pursuant to this subdivision are not public records under Chapter 132 of the General Statutes.
(b)	The information provided by State agencies to the Secretary of Information Technology under this section is protected from public disclosure pursuant to G.S. 132‑6.1(c)."

PART III. APPROPRIATIONS/BUDGETING
SECTION 3.1.  The Department of Information Technology, along with the Office of State Budget and Management and the State Controller, shall develop and implement a plan to manage all information technology funding, including State and other receipts, as soon as practicable. As part of the plan and implementation:
(1)	Funding for information technology resources, projects, and contracts shall be appropriated to and managed by the Department of Information Technology.
(2)	Funding for Department of Information Technology Shared Services and approved contracts should remain with the agencies.
(3)	Information technology budget codes and fund codes shall be created as required.
SECTION 3.2.  All employees and all positions in State agencies identified as principal departments in G.S. 143B‑6 who serve in the position of, or exercise responsibilities for, information technology described in this act are hereby transferred to the Department of Information Technology. Transfers of employees shall not affect any individual employee's current compensation or benefits. Such employees and positions shall remain in their current locations within the respective agencies until such time as the Department of Information Technology, the Office of State Human Resources and the State agency implement a plan to redeploy such employees.
SECTION 3.3.  The provisions in this Part become effective July 1, 2015.

PART IV. CONFORMING CHANGES
SECTION 4.1.  G.S. 66‑58.20(b) reads as rewritten:
"(b)	Each State agency as defined in G.S. 143B‑1300(9) shall functionally link its Internet or electronic services to a centralized Web portal system established pursuant to subsection (a) of this section."
SECTION 4.2.  G.S. 136‑89.194(g)(2) reads as rewritten:
"(g)	Contract Exemptions. – The following provisions concerning the purchase of goods and services by a State agency do not apply to the Turnpike Authority:
…
(2)	Article 3D of Chapter 147 of the General Statutes. The Authority may use the services of the Department of Information Technology Services in procuring goods and services that are not specific to establishing and operating a toll revenue system. However, all contract information for contracts for information technology are subject to disclosure in accordance with Article 14 of Chapter 143B of the General Statutes."
SECTION 4.3.  G.S. 138A‑3 reads as rewritten:
"§ 138A‑3.  Definitions.
The following definitions apply in this Chapter:
…
(30)	Public servants. – All of the following:
…
p.	The Secretary, deputy secretaries, chief information officer, deputy chief information officers, chief financial officers, and general counsel of the Department of Information Technology."
SECTION 4.4.  G.S. 143‑129(e)(7) reads as rewritten:
"(e)	Exceptions. – The requirements of this Article do not apply to:
…
(7)	Purchases of information technology through contracts established by the Department of Information Technology Services as provided in Article 14 of Chapter 143B of the General Statutes."
SECTION 4.5.  G.S. 143C‑3‑3(e) reads as rewritten:
"(e)	Information Technology Request. – In addition to any other information requested by the Secretary of Information Technology (Secretary), any State agency requesting significant State resources, as defined by the Secretary, for the purpose of acquiring, operating, or maintaining information technology shall accompany that request with all of the following:
(1)	A statement of its needs for information technology and related resources, including expected improvements to programmatic or business operations, together with a review and evaluation of that statement prepared by the Secretary.
(2)	A statement setting forth the requirements for State resources, together with an evaluation of those requirements by the State Chief Information Officer that takes into consideration the State's current technology, the opportunities for technology sharing, the requirements Article 14 of the General Statutes, and any other factors relevant to the analysis. And, in cases of an acquisition, an explanation of the method by which the acquisition is to be financed.
(3)	A statement by the Secretary that sets forth viable alternatives, if any, for meeting the agency needs in an economical and efficient manner. A statement setting forth the requirements for State resources, together with an evaluation of those requirements, including expected improvements to programmatic or business operations by the Secretary that takes into consideration the State's current technology, the opportunities for technology sharing, the requirements of the General Statutes, and any other factors relevant to the analysis.
(4)	In the case of an acquisition, an explanation of the method by which the acquisition is to be financed.
This subsection shall not apply to requests submitted by the General Assembly or the Administrative Office of the Courts."
SECTION 4.6.  G.S. 150B‑21.1(a)(10) reads as rewritten:
"(a)	Adoption. – An agency may adopt a temporary rule when it finds that adherence to the notice and hearing requirements of G.S. 150B‑21.2 would be contrary to the public interest and that the immediate adoption of the rule is required by one or more of the following:
…
(10)	The need for the Secretary of Information Technology to implement the information technology procurement provisions of Article 3D of Chapter 147 of the General Statutes."
SECTION 4.7.  G.S. 150B‑38 is amended by adding a new subsection to read:
"(l)	Standards adopted by the Secretary of Information Technology applied to information technology as defined by G.S. 143B‑1300."
SECTION 4.8.  G.S. 143‑59.1(a) reads as rewritten:
"(a)	Ineligible Vendors. – The Secretary of Administration, Secretary of Information Technology, and other entities to which this Article applies shall not contract for goods or services with either of the following:
…."
SECTION 4.9.  The following statutes are amended by deleting "Office of Information Technology Services" and substituting "Department of Information Technology Services." G.S. 62‑3(23), 62A‑41(a), 66‑58.20(a), 114‑19.20(a), 115C‑529, 116‑40.22(d), 126‑5(d)(1)k., 130A‑309.138(1), 143‑48.3, 143‑49, 143‑129(e)(7), 143‑135.9(c), 143‑663(a)(2), 143B‑146.13(a), 143‑725, 143C‑2‑5(a), 143C‑2‑6(a), 147‑86.2, 163‑165.7(d)(9), 143‑135.9, 143‑663, 143B‑951, 143C‑2‑5, 143C‑2‑6, 147‑86.2, and 163‑165.7.
SECTION 4.10.  The following statutes are amended by deleting "State Chief Information Officer" and substituting "Secretary of Information Technology Services." G.S. 63‑96(d)(8), 66‑58.12(c), 66‑58.20(a), 105‑259(45), 115C‑102.5(b)(9), 115C‑102.6(b), 116E‑3(10), 120‑231(b), 126‑5(d)(1)k., 132‑6.2(b), 143‑661, 143‑664, 143‑725(a)(4), 143‑726(d)(19), and 143B‑426.38A (Office of the SCIO changed to Secretary of IT, SCIO changed to Secretary).
SECTION 4.11.  Modification of References. – The Revisor of Statutes may delete any reference in the General Statutes to the Office of Information Technology or any derivative thereof, and substitute references to the Department of Information Technology created by this act wherever conforming changes are necessary.
The Revisor of Statutes may delete any reference in the General Statutes to the State Chief Information Officer or any derivative thereof, and substitute references to the Secretary of Information Technology created by this act wherever conforming changes are necessary. 
Further, the Revisor of Statutes shall delete all references to former Article 3D of Chapter 147 of the General Statutes and may insert appropriate references to Article 14 of Chapter 143B of the General Statutes as may be appropriate.

PART V. ADMINISTRATIVE MATTERS
SECTION 5.1.  No action or proceeding pending on July 1, 2015, brought by or against the Department of Information Technology shall be affected by any provision of this act, but the same may be prosecuted or defended in the name of the Department of Information Technology. In these actions and proceedings, the Department shall be substituted as a party upon proper application to the courts or other public bodies.
SECTION 5.2.  Any business or other matter undertaken or commanded by the Department of Information Technology regarding any State program, office, or contract or pertaining to or connected with its respective functions, powers, obligations, and duties that are pending on the date this act becomes effective may be conducted and completed by the Department of Information Technology in the same manner and under the same terms and conditions and with the same effect as if conducted and completed by the former commission, director, or office.
SECTION 5.3.  Unless otherwise specifically provided by this act, any previous assignment of duties within the purview of this act by the Governor or General Assembly shall have continued validity.

PART VI. EFFECTIVE DATE
SECTION 6.1.  Except as otherwise provided, this act is effective when it becomes law.